Woltman Group wants to help your non-profit organization maintain their tax-exempt status. Below are a few guidelines to follow to be sure that this happens.
The IRS can make it difficult to maintain the tax-exempt status of your non-profit organization. Each year the IRS requires most tax-exempt organizations to submit the Form 990 and its relations, which includes:
- Income Statement that contains very specific revenue and expense categories like donations, salaries, postage, rent.
- Balance Sheet with specific categories like cash, accounts receivable, accounts payable.
- Functional Expense Statement with all the expenses allocated to either program services, fundraising, or operations.
- Individual Program Expense Statement that reports all of the expenses for each program or service like seminar programs or educational mailings.
- Revenue Support Schedules that detail the organization’s sources of income in specific categories like charitable donations, membership fees, investment income.
The IRS uses these very specific revenue and expense classifications to determine if your organization will retain its tax-exempt status, making it important that your accounting system follows revenue guidelines. These include:
- Reviewing and compiling your financial statements
- Designing, installing, and maintaining your Accounting System
- Weekly, bi-weekly, or monthly payroll preparation
- Payroll Tax Preparation and Deposits
- Providing training for your accounting personnel
- Completing and filing your non-profit status application
- Providing training for your board on non-profit financial statement usage and effective budgeting practices
- Preparing and filing the 990 and 990T tax forms
- Preparing your initial start-up documentation, including incorporation, federal employee identification number (FEIN), and payroll setup with federal and state agencies.
- For Churches: Preparing the pastoral housing allowance and other required benefit documentation to meet the complex dual status of ministers.
If you’re starting a new not-for-profit organization we can help you prepare your organization’s 501 (c)(3) application for tax-exempt status. This includes:
- Articles of Incorporation containing the Exempt Purpose Statement as described in IRS Code section 501(c)(3) and defined in Treasury Regulation 1.501(c)(3)-1 Paragraph d and the Dissolution Statement described in Treasury Regulation 1.501(c)(3)-1 Paragraph b subparagraph 4 (“Organizational Test”).
- Employer Identification Number
- By-laws of the Organization
- Minutes of Board Meetings
- Names, Addresses, and Resumes of Board Members
- Names and addresses of all Active Members
- Inventory of Assets like cash, furniture, equipment, property, pledges…
- Inventory of Liabilities like mortgages, accounts payable, loans…
- Rent/Lease Agreements and Contracts
- Revenue and Expense Statements for the last four years or as far back as possible if your organization has been in existence for less than four years.
- Written Reason for Formation and History of the organization.
- Organization Mission Statement or Statement of Faith or Beliefs for Churches and other Religious Organizations.
- Organization Activities, Operations and Programs Documentation including your statement of purpose & operations, food programs, fundraisers, flyers/brochures/pamphlets…
- Financial Support Documentation including all sources of revenue like contributions, tithes, offerings, fundraisers…
- Fund Raising Program Descriptions
- IRS Processing/Filing Fee